The Study Of Co-movement Among BRIC Stock Markets

Between the last decades,the stock market of Mainland China has made great progress.Improvement of laws and regulations has made contribution to solving a series of problems.At the same time,with the process of economic globalization,people pay more attention to the co-movement between the world main stock markets and domestic stock markets,especially the BRIC.With the background of economic globalization and financial liberalization,we need to find out what is the linkage between China's stock market and other stock markets of BIRC,whether the linkage will change as time goes by,and what is the time track of the linkage.To a further step,what have formed the time-varying pattern?China stock market has been gradually integrated into world capital market.The change that China stock market is open from close offers more portfolios for investors to spread risks and improve investment income.It also needs China stock market administrators establish and improve appropriate policies for ensuring China stock market.For this purpose,the paper that co-movement between the Chinese stock market and the other BRIC stock markets studied.Economic conditions,national conditions,openness,cultural,political and other reasons caused by the differences between countries and different economic ties are the foundation of the stock market linkage.Strength of economic association,trade and direct investment can affect the linkage of capital markets between countries.With the methods of Granger Causality Test,VAR assessment,Impulse response inspection,the co-movement between BRIC is tested.This paper uses the daily log return of the Shanghai Composite Index,Brazilian IBOVESPA Index?Russian RTS Index?Indian SENSEX30 Index's closed price during January 2007 and January 2018.This paper suggests easing adverse impact of American stock market.In the regulatory hot money flows,we can strictly control the influx of money,promote the international cooperation,strengthen the management of foreign capital inflow stock market,and collect the Tobin tax if necessary.To reform of the international monetary system,we can promote international monetary fund decision-making mechanism more transparent,avoid black-box;enhance the influence of BRIC in the international monetary system.To regulate disclosure in the stock market,we can establish and perfect the supervision of securities market organization system,establish and perfect relevant laws and regulations system,make securities market information supervision system,and improve the securities issuance and audit system.